KUALA LUMPUR, October 18 – In a bid to support first-time home buyers, the Malaysian government has announced a tax relief of up to RM7,000 on loan interest payments for properties valued at up to RM500,000. This initiative is part of the newly unveiled RM421 billion federal budget for 2025, which marks a significant increase of RM27.2 billion compared to the previous year, making it the first budget to surpass RM400 billion.
The tax relief scheme aims to ease the financial burden on new homeowners and is applicable for three consecutive assessment years for sale and purchase agreements finalized between January 1, 2025, and December 31, 2027. Buyers of residential properties valued between RM500,001 and RM750,000 will also benefit from a tax relief of up to RM5,000. This measure is expected to stimulate the housing market and make homeownership more accessible to Malaysians.
With operational expenditure accounting for RM335 billion, or 79.6% of the total budget, and RM86 billion allocated for development projects, the government is taking significant steps to address housing affordability while promoting economic growth. The introduction of this tax relief underscores the commitment to enhancing the welfare of citizens and fostering a sustainable housing market.
